what’s the average rent in London?

Knowing the average rent in London is necessary for buy-to-let landlords, particularly in case you’re interested by buying a property someplace inside its sprawling cityscape.

The rent you obtain might be offset by your buy-to-let mortgage, you probably have one. But understanding rent costs in London additionally helps you’re employed out potential rental yield, in addition to set costs that affect who your property (or properties) will attraction to. Keep in thoughts that rent costs may decide how rapidly your property is let.

Plus, the extension of the stamp obligation vacation means you may doubtlessly save hundreds in case you’re increasing your property portfolio in the coming months.

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How a lot is rent in London?

According to DwellingLet, the average rent in London for brand spanking new tenancies is £1,572 a month. DwellingLet additionally says that rents in London have decreased by 4.7 per cent in comparison with final 12 months.

But rents can after all fluctuate relying on a lot of elements, together with the location and variety of bedrooms.

Below we check out London rent costs based mostly on the location and variety of bedrooms. They’re based mostly on statistics from the Office for National Statistics (ONS), masking October 2019 to September 2020.

You can use this text as a information and a springboard for conducting your individual analysis into good areas for buy-to-let properties.

Map of London rent costs

Use the interactive map beneath from the Valuation Office Agency to see the median month-to-month personal rental worth in England, by native authorities and bed room class.

For a extra detailed map of London rent costs, go to london.gov.uk and discover average rent by postcode.

Covid-19: Rental costs in London decline

The rental market slowed attributable to the affect of Covid-19, and London has been considered one of the hardest hit cities over the final 12 months. There are many causes for this, together with fewer worldwide college students, vacationers, and other people travelling for enterprise. There has additionally been a basic want to maneuver out of cities into areas with more room.

A examine from property brokers Hamptons International in May final 12 months discovered the greatest drop in rental costs in Zones 1 to three, as reported by the Evening Standard.

That stated, whereas central areas are exhibiting a decline in average rental worth, some outer London boroughs are exhibiting rental development. This has been dubbed ‘the halo impact’ with a report from Zoopla exhibiting rents rising in areas like Havering and Enfield.

Average rent in London for rooms, studio and one bed room properties

Single rooms and one bed room and studio properties are sometimes fashionable with younger professionals shifting to the capital or deciding to strike out on their very own.

Low rental costs can usually be a boon for these kinds of properties, as they’re prone to attraction to those that are renting by themselves – relying on location, after all.

Bexley, Havering and Sutton have a few of the lowest average rents in the capital for rooms, studio and one bed room properties. If you’re seeking to attraction to younger professionals, properties in these areas with good transport hyperlinks might be a worthwhile funding.

As you may anticipate, the highest average rents in London for rooms, studio and one bed room properties might be discovered a lot nearer to the centre. Kensington and Chelsea, Camden, Westminster, and the City of London all place extremely for these properties.

Highest average rental costs for studio and one bed room properties in London

These are the areas in London with the highest average month-to-month rent for studio and one bed room properties.

Location Studio One bed room
Kensington and Chelsea £1,427 £2,062
Islington £1,383 £1,565
Tower Hamlets £1,398 £1,547
Westminster £1,371 £2,113
Lambeth £1,240 £1,595

Lowest average rental costs for studio and one bed room properties in London

These are the areas in London with the lowest average month-to-month rent for studio and one bed room properties.

Location Studio One bed room
Havering £669 £891
Croydon £762 £964
Sutton £776 £923
Barking and Dagenham £729 £981
Bexley £688 £854

Also Bromley and Hounslow areas additionally characteristic some low average rental costs for studio and one bed room properties in London.

Average rent in London for 2 and three bed room properties

Two and three bed room properties have a different viewers. From households to sharers, the sort of tenants you’re prone to get in these properties will rely extra on different options (akin to outside house and bed room measurement) in addition to native providers.

For all these properties, Bexley, Havering and Sutton once more have a few of the lowest average rents. Lots of east London boroughs even have low rents for 2 and three bed room properties – areas like Barking and Dagenham, Redbridge, and Waltham Forest (in the north east of the capital).

But east London is considered one of London’s buy-to-let hotspots as, although the rental costs are low, the yield is excessive. A easy technique to calculate rental yield is by taking the yearly rental revenue and dividing it by the buy worth and prices. In east London, Stratford and East Ham have some nice rental yields. And throughout the river to south-east London, the aforementioned Bexley is nice for rental yield too.

At the different finish of the spectrum, Kensington and Chelsea, Camden and the City of London all characteristic once more for 2 and three bed room properties, as do Hammersmith and Fulham, Hackney and Islington.

Highest average rental costs for 2 and three bed room properties in London

These are the areas with the highest average month-to-month rent costs in London for 2 and three bed room properties.

Location Two bed room Three bed room
Westminster £2,920 £4,152
Camden £2,254 £2,880
Kensington and Chelsea £3,030 £4,938
Islington £1,934 £2,487
Hammersmith and Fulham £1,922 £2,653

Lowest average rental costs for 2 and three bed room properties in London

These are the areas in London with the lowest average month-to-month rent for 2 and three bed room properties.

Location Two bed room Three bed room
Bexley £1,105 £1,281
Havering £1,120 £1,384
Redbridge £1,293 £1,589
Sutton £1,163 £1,498
Waltham Forest £1,364 £1,649

The Romford space additionally options in the listing of lowest rent costs, in addition to Dartford in case you’re trying additional afield (Dartford is technically labeled as Kent).

Average rent in London for 4 or extra bed room properties

Four or extra bed room properties might be trickier to rent, and are sometimes extra prone to be occupied by college students and sharers than households. If you do rent to a number of sharers (even when your property is smaller than 4 or 5 beds) then you could legally be required to have an HMO license, so communicate to the native authority when contemplating buying a property of that measurement.

The ordinary suspects featured above additionally dominate the highest and lowest average month-to-month rents for 4 or extra bedrooms. Newham and Greenwich are different areas with low averages for all these property, with Wandsworth, Lambeth and Barnet additionally that includes excessive in the desk.

Highest average rental costs for 4 and 5 bed room properties in London

These are the areas in London with the highest average month-to-month rent for 4 or extra bed room properties.

Location Four or extra bedrooms
Westminster £8,505
Camden £3,983
Kensington and Chelsea £7,585
Islington £3,537
Hammersmith and Fulham £4,780

For different areas with excessive average London rents, there’s Richmond, Lambeth and Hackney.

Lowest average rental costs for 4 and 5 bed room properties in London

These are the areas in London with the lowest average month-to-month rent for 4 or extra bed room properties.

Location Four or extra bedrooms
Bexley £1,724
Barking and Dagenham £1,655
Havering £1,714
Sutton £1,915
Croydon £1,940

Do you’ve got a buy-to-let property in London? Let us know in the feedback.

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